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Like many before him, Brenan Hefner arrived in New York 20 years ago in search of a career on Wall Street.
His journey will sound familiar to those drawn to the nation’s financial capital. Hefner got a job at an asset management firm in Manhattan, found love and career success, and eventually moved to Pelham, an upscale town in Westchester, to start a family.
He would still be there if it wasn’t for the coronavirus pandemic.
By forcing the mass adoption of remote work and crimping many of the advantages of urban life, the pandemic has turbocharged migration from high cost, high-density places to lower-cost states including Texas, Florida and Nevada. Nearly half of New Yorkers earning more than $100,000 a year said they considered leaving the city recently, with cost of living being the top factor, according to a Manhattan Institute survey.
“My concern isn’t that they’re leaving, it’s that they’re taking their businesses with them,” said Mark Klein, a New York-based tax attorney and chairman of Hodgson Russ. The flight of business owners is worrying for those remaining in the city, he said.
Those who have money and know how to make money can do it from all over. Manhattan was a fashionable place to do business in. It is no longer so, not for the generation thats moving out at least.
Whats left behind is, union workers in hospitality business holding a back of diks as that industry is wiped out basically.
Democrats want to drag this out for as long as possible ( covid), destroying businesses and peoples lives.
Taxes will have to go up, but who will be around to pay for them remains a mystery.
On another hand, plenty of businesses have been operational as if nothing happened. Construction is one of them.
Like many before him, Brenan Hefner arrived in New York 20 years ago in search of a career on Wall Street.
His journey will sound familiar to those drawn to the nation’s financial capital. Hefner got a job at an asset management firm in Manhattan, found love and career success, and eventually moved to Pelham, an upscale town in Westchester, to start a family.
He would still be there if it wasn’t for the coronavirus pandemic.
By forcing the mass adoption of remote work and crimping many of the advantages of urban life, the pandemic has turbocharged migration from high cost, high-density places to lower-cost states including Texas, Florida and Nevada. Nearly half of New Yorkers earning more than $100,000 a year said they considered leaving the city recently, with cost of living being the top factor, according to a Manhattan Institute survey.
“My concern isn’t that they’re leaving, it’s that they’re taking their businesses with them,” said Mark Klein, a New York-based tax attorney and chairman of Hodgson Russ. The flight of business owners is worrying for those remaining in the city, he said.
As mentioned, I know a few people who moved out of Manhattan, but they just moved their primary home elsewhere, and are keeping the Manhattan coop as their second property (meaning they will be stil paying real estate tax for their Manhattan place, but will no longer pay their income taxes to NY or NYC).
Those people who sell their place in NY and move elsewhere (like the guy from your article) must be selling TO someone, so they won't be causing net loss of population... however, they still may be causing net loss of income taxes for NY State and City. I see in your linked article that the guy sold his former Westchester home to someone from England. From what I have encountered in my international travels, Europeans still have an incredible fascination with NYC. Properties in NYC, although expensive by the standards of participants in this forum, are very cheap compared with, eg, London. If people from England realize their dream of living in NYC by buying their retirement coop in Manhattan, and spend 5 months per year in Manhattan, and 7 months in, say, Brighton (a seaside resort in Britain), their total property expense will not be much higher than if they lived in London, while they will still not be residing in NYC, so will not owe NY State or City taxes.
Anyway, I think people still interested in NYC will be devising ways of having a foothold in the city without being liable for paying the income taxes to the city or state. Some loss of income tax revenue could still be recouped through sales taxes, but I don't see any feasible taxation scheme that would allow NYS/NYC to continue funding of public services at the same level after a substantial number of earners move their tax home elsewhere.
What people don't realize is that it's not the mega rich that will flee when times get hard, but the upper middle class. The people earning 10s and 100s of millions of dollars have the accountants to handle whatever NYS or NYC throws at them, but the people earning six figures will look at the metrics and decide it's not worth it.
This wasn't an issue when the SALT deduction was around. I do expect a Biden presidency to re-enact SALT with no cap.
What people don't realize is that it's not the mega rich that will flee when times get hard, but the upper middle class. The people earning 10s and 100s of millions of dollars have the accountants to handle whatever NYS or NYC throws at them, but the people earning six figures will look at the metrics and decide it's not worth it.
This wasn't an issue when the SALT deduction was around. I do expect a Biden presidency to re-enact SALT with no cap.
You expect a Biden presidency to re-enact a federal tax break? I also need to say that SALT cap in fact does not hurt the upper middle class quite so much - in the past, the upper middle class had to pay the Alternative Minimum Tax (AMT) which reversed most of the SALT deduction anyway. My taxes are actually more favorable with the Trump tax scheme, where I can no longer take the SALT deduction, but also don't have to pay the AMT. Upper middle class leaving Manhattan due to abolishing SALT deduction is a myth - they are leaving primarily because of decreased quality of life, and secondarily because of 13% state + city taxes.
People will still pay a 13% income tax in order to live in a safe exciting city, but will not pay that to live in the building that has market price units with a mandatory share of Section 8 units. They will not pay 13% income tax to be beaten/stabbed on the subway, or mugged/murdered in a city park.
Like many before him, Brenan Hefner arrived in New York 20 years ago in search of a career on Wall Street.
His journey will sound familiar to those drawn to the nation’s financial capital. Hefner got a job at an asset management firm in Manhattan, found love and career success, and eventually moved to Pelham, an upscale town in Westchester, to start a family.
He would still be there if it wasn’t for the coronavirus pandemic.
By forcing the mass adoption of remote work and crimping many of the advantages of urban life, the pandemic has turbocharged migration from high cost, high-density places to lower-cost states including Texas, Florida and Nevada. Nearly half of New Yorkers earning more than $100,000 a year said they considered leaving the city recently, with cost of living being the top factor, according to a Manhattan Institute survey.
“My concern isn’t that they’re leaving, it’s that they’re taking their businesses with them,” said Mark Klein, a New York-based tax attorney and chairman of Hodgson Russ. The flight of business owners is worrying for those remaining in the city, he said.
Many are also moving to the Washington, DC/Northern Virginia area. Queens, NY can thank AOC for losing Amazon, 25,000 high-paying jobs. Socialism and the Squad is running our country into the ground, in plain sight! WAKE UP, AMERICA!!! Even loyal Democrats will vote against their FAR Leftist, no border, no fossil fuels, free stuff for all, no law & order, weak military, socialist agenda! #WalkAway
Many are also moving to the Washington, DC/Northern Virginia area. Queens, NY can thank AOC for losing Amazon, 25,000 high-paying jobs. Socialism and the Squad is running our country into the ground, in plain sight! WAKE UP, AMERICA!!! Even loyal Democrats will vote against their FAR Leftist, no border, no fossil fuels, free stuff for all, no law & order, weak military, socialist agenda! #WalkAway
So again, I have tiny pied a terres in both NYC and San Francisco. Comparing the two cities, SF has been somewhat less hit than NYC by the spike in violent crime/ protest-related vandalism, but much more with burglaries-theft/ homelessness. Traditionally liberal San Franciscans are all extremely uncomfortable with the threat of continued/ worse collapse of quality of life in the country and therefore the city as well if Biden wins, but they definitely cannot ever vote for Trump. So... one of my neighbors in SF who watches my unit when I am not there told me that she and all her friends voted for Howie Howkins, the Green Party candidate (who proposes extreme taxation, but fortunately has no chance of winning at the national level :-). So, I told her, you realize that your vote for the Greens decreases the number of votes for the Dems, and increases the chance of Trump winning? And she says, yeah, but I am scared of total chaos if Biden wins, and I can't vote for Trump... :-).
I wonder how common this phenomenon is in upper middle/middle class liberal circles of predominantly liberal cities, of voting for Trump obliquely, by voting for the Greens. If it is as common as apparently it is in SF, we could end up with the majority vote for Trump-R, with the rest of the votes split between Biden-D and Hawkins-G :-). That would be a riot (in the sense of "very funny"). But needless to say, any outcome could still lead to riots (in the sense of "actual riots")....
Many are also moving to the Washington, DC/Northern Virginia area. Queens, NY can thank AOC for losing Amazon, 25,000 high-paying jobs. Socialism and the Squad is running our country into the ground, in plain sight! WAKE UP, AMERICA!!! Even loyal Democrats will vote against their FAR Leftist, no border, no fossil fuels, free stuff for all, no law & order, weak military, socialist agenda! #WalkAway
they leased out another building anyway.....so NYC didnt lose any jobs
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I also need to say that SALT cap in fact does not hurt the upper middle class quite so much - in the past, the upper middle class had to pay the Alternative Minimum Tax (AMT) which reversed most of the SALT deduction anyway. My taxes are actually more favorable with the Trump tax scheme, where I can no longer take the SALT deduction, but also don't have to pay the AMT. Upper middle class leaving Manhattan due to abolishing SALT deduction is a myth - they are leaving primarily because of decreased quality of life, and secondarily because of 13% state + city taxes. 
